Global Partners LP (GLP) Q1 2024 Earnings Call Transcript Highlights: Navigating Challenges ...

GuruFocus Research
4 min read

In This Article:

  • Adjusted EBITDA: $56 million in Q1 2024, down from $76 million in Q1 2023.

  • Net Loss: $5.6 million in Q1 2024, compared to net income of $29 million in Q1 2023.

  • Distributable Cash Flow: $15.8 million in Q1 2024, down from $46.3 million in Q1 2023.

  • Adjusted Distributable Cash Flow: $16 million in Q1 2024, compared to $46.3 million in Q1 2023.

  • Quarterly Cash Distribution: $0.71 per common unit, an 8.4% increase year-over-year.

  • Product Margin (GDSO): Increased by $4.2 million to $187.7 million in Q1 2024.

  • Product Margin (Gasoline Distribution): Increased by $0.8 million to $121.6 million in Q1 2024.

  • Product Margin (Station Operations): Increased by $3.4 million to $66.1 million in Q1 2024.

  • Operating Expenses: Increased by $11.8 million to $120.1 million in Q1 2024.

  • SG&A Expenses: Increased by $7.5 million to $69.8 million in Q1 2024.

  • Interest Expense: $29.7 million in Q1 2024, up from $22.1 million in Q1 2023.

  • Capital Expenditures: $16.6 million in Q1 2024, including $11.7 million for maintenance and $4.9 million for expansion.

  • Leverage Ratio: Funded debt to EBITDA at 3.26 times as of March 31, 2024.

  • Total Borrowings: $226 million as of March 31, 2024, all under working capital revolver.

Release Date: May 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Global Partners LP significantly expanded its terminal network, more than doubling its storage capacity through strategic acquisitions.

  • The company successfully completed the acquisition of 25 liquid energy terminals from Motiva ahead of schedule, enhancing operational efficiency.

  • Declared a quarterly cash distribution of $0.71 per common unit, representing an 8.4% increase over the prior year, payable to unitholders.

  • Redeemed all outstanding Series B preferred units, which is expected to be accretive to distributable cash flow by approximately $0.09 per unit annually.

  • Maintained a strong balance sheet with leverage well within credit agreement limits, and ample excess capacity on credit facilities.

Negative Points

  • Reported a net loss of $5.6 million for the quarter, compared to a net income of $29 million in the same period last year.

  • Adjusted EBITDA and distributable cash flow both decreased significantly from the previous year.

  • Product margin from distillates and other oils decreased by $13 million due to less favorable market conditions.

  • Operating expenses increased by $11.8 million, primarily due to the acquisition of terminals from Motiva.

  • The first quarter performance of the retail joint venture was impacted negatively by severe weather conditions and a competitive margin environment.

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